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    astringer's Avatar
    astringer Posts: 1, Reputation: 1
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    #1

    Dec 16, 2010, 02:30 PM
    If bonds payable are not callable then what can the issuing corporation do
    If the bonds aren't callable can the issuing corporation repurchase them in the open market, get special permission from the SEC to repurchase them or more likely to repurchase them if the interest rates increase?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 16, 2010, 03:55 PM

    When interest rates rise, bond prices go down. Thus, if the company has the extra cash, they can buy the bonds in the open market at a lower rate than they would have to pay if the bond matured.
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